LED Energy Savings
Current Electricity Cost
Defined as how much you are spending to light your building. Calculated as the product of how many hours per year your current lights are running, the kilowatt-hour rate you are paying for electricity, and the wattage of your existing light bulbs.
Projected Lighting Electricity Cost (LED)
Defined as how much you would be spending to light your building if you switched over to LED lights. This assumes that the usage and the kilowatt-hour (kwh) rate are the same and there is a 60-90% wattage reduction, since LED’s put out the same amount of light using so much less power.
EPA Tax Incentive
A deduction of $.60 per square foot is allowed if the lighting power density (watts per square foot) is decreased by 40% or more and 50% or more for warehouses. The cash value of this deduction is displayed here and a 30% tax bracket is assumed.
LED Operating Savings
Bulb Replacement Costs
This assumes that you are paying the commercial average cost per bulb and that your average bulb lasts 15,000 hours. Over the 80,000 hour life of an LED bulb, you would have to replace the average bulb approximately 5 times. This is then calculated to an annual number that is dependent on the usage.
Maintenance Labor Cost:
Commercial properties typically spend $.05 per square foot on the labor to replace light bulbs. However, we have seen this number as high as $2 per square foot when the task is outsourced.
Reduced Air Conditioning Load
According to a study done by the Lawrence Berkeley National Laboratory, where actual buildings were surveyed, a net HVAC savings of $.03 is seen for every $1 saved on electricity. For large commercial buildings, the savings is amplified at $0.16 for every $1. The figure is the difference between the decreased cooling load and the increased heating load.
